Creative Ways to Increase NOI with Your Rental Propert
As a buy-and-hold investor, the income you generate off your rental property is a top priority for you. Well, what if I told you that there are some fairly simple ways you can increase your NOI (net operating income) so that you can make even MORE off your investment each month? You’d be pretty stoked, right? Good, because there are some easy ways to boost NOI, and you don’t have to spend a fortune in home upgrades, either. Here are some of the options, all of which have proven popular with tenants, who are then willing to spend more each month in rent. Hence, the increased NOI.
Add Some Storage Space
Ugh, extra storage space, I don’t need that….said no one ever, because everyone LOVES having dedicated storage space where they can stash all their stuff and keep it neat and tidy and out of the way. This is especially true in busy areas or places that tend to attract clutter, like kitchens or closets. If you can’t carve out space for additional storage areas, you can at least add features like shelves and drawers to make the space more functional for storage purposes.
Create an Inviting Outdoor Area
Having a nice space outdoors is another key selling point for prospective tenants, and one that can convince them that your place is the one to call home. Creating an inviting area with seating, planters, and lighting can easily allow you to tack on another $25 or $50 in rent. You can even take it the extra mile by installing outdoor speakers or a ceiling fan if you have a covered porch.
Put in Washer/Dryer Hookups
If you’ve never lived without immediate access to a washer and dryer, then you have no idea how amazing it is to finally have them on-site, in your own living quarters. Honestly, it’s a luxury, and people will pay a premium for it. If your home doesn’t currently have hookups for these appliances, start looking into ways to add them. While you’ll spend a few hundred bucks to install the hookups and add the appliances, you can charge anywhere from 5% to 20% more per month in rent, depending on where your unit is located. There’s also the added bonus that your place becomes infinitely more attractive to potential renters.
Millions of people own pets, and if you’re not allowing them, you’re not only cutting yourself off from a huge segment of the renter pool, you’re also missing out on some sweet income potential. Units that allow pets can command a higher rent price, and trust me, people will pay it to ensure that Fluffy can come with them to their new home. Plus, you can charge a pet deposit, which has the twofold benefit of increased NOI when it’s paid, as well as financial protection if the animal does any damage to the property.
Each of these options will allow you to ask more in rent, thereby increasing your net operating income and beefing up your bank account a bit more. While a couple of them do come with an upfront expense, you do have flexibility in how much you decide to spend. You can go bare minimum, or you can go all out – just remember that your rent will need to reflect it, and be careful not overspend on something that won’t generate a long-lasting return or will take forever to pay for itself.